Introduction
In a decade ago, marketing has been playing an important role for a company’s development. Marketing strategy may help a company effectively use its resources to deliver a sales message to a target audience. According to Kerin ‘et al.’ (2008, p.6) “marketing is the process of developing, pricing, promoting and distributing goods, services and ideas to satisfy the needs of consumers”. In order to lead the business into globally, marketing teams have to be aware of a local consumers’ need, desire to purchase and capable to purchase. This report will analyse Denmark’s economic factors and social culture as a potential foreign market.
Economic environments of Denmark
A country’s development was highly associated to their economic environments, investigate Denmark’s economic factors may concisely foresee the potential market of doing business.
Firstly, foreign exchange and gross national income will be discussed. Although Denmark is members of European Union, it does not participate in the programme of EMU (Economic and Monetary Union). Denmark decided to remains Krone as their currency, so Denmark has a stable rate of exchange and equivalent with the Euro (Denmark Economic Affairs, 2012). The decisions made by Denmark were wise choices as EU was unionized with 27 countries and would easily influences by the fluctuation of Euro. Thus, Denmark has ranks as the one of the world’s highest per capita income and has a highly developed mixed market economy and its national has enjoying large social welfare and high living standards. According to Denmark Economic Affairs (2012), “Denmark enjoyed a long period of sustained economic growth, low unemployment and generous social welfare provisions”. In accordance with this economic growth, Denmark offers a huge market opportunity for luxury goods and services. For example, the average gross national